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Money in the transition to adulthood: patterns of allocation between parents and children in Italy

Emanuela Rinaldi (Dipartimento di Sociologia, Università Cattolica del Sacro Cuore, Milano – ITALY)

& Carole B. Burgoyne (School of Psychology, University of

Exeter – UK)

IAREP Conference, 5-7 September 2008, Rome

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1.Economic socialization: research in Italy

2.The present study: questions, method and sample

3.Results: typology of allocation system during adolescence (5 groups)

4.Brief description of 2 or 3 of the groups

5.Discussion

Overview of today’s talk

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1. Economic socialization

The process by which individuals acquire skills, knowledge & attitudes relevant to functioning in the economy.

The process starts in childhood and continues through whole life-cycle and involves many socialization agencies

In Italy, family still plays a crucial role (Operto 2008)

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Research on economic socialization in Italy

Well established research interest in: (i) cognitive psychology on economic world of children (Berti & Bombi 1988; Bombi 1991; Bombi 1996; Bombi & Cannoni 2008) (ii) behavioral economics and game theory

Studies in social psychology & sociology, mainly on: teenagers’ views of macro-economic issues general attitudes towards money quantitative aspects of money received by children and

teenagers (see: Dosso & Rosci 2000; Paliaga & Provenzano 2001; Dei 2006; Ruspini 2008; Pedrizzi & Castrovilli 2008)

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In everyday life do different systems of money allocation (e.g. allowance versus money-on demand) overlap?

Why do Italian parents choose specific systems of money allocation for their children?

How are different systems of money allocation perceived by Italian children?

But…

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2. Aims of the study

1) Investigate the range of ways that parents give their children access to money, the reasons for these, and the consequences.

2) develop a typology of intergenerational money allocation

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Method: qualitative exploratory study

Research design based on personal reflections as well as from previous researches on intra-couple (e.g. Pahl 1989; Burgoyne 1990) and inter-generational exchange of money (e.g.: Godbout 1992; Cicchelli 1997; Santoro 2002 )

In depth-interviews with children and parents

Each participant interviewed separately.

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Sample

26 young adults working full-time for at least 2 years, women and men,

aged 27-34 years, having finished or interrupted their

study,

20 of their parents (12 mothers and 8 fathers) all parents were asked to participate. Not all agreed.

All living in Milan or metropolitan surroundings

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Children’s work career (since the very first occasional job)

Children’ money management from adolescence till the present

Parent-child money exchange from adolescence till the present

(Briefly) atmosphere in the home and specific changes from adolescence to the present

In this presentation we will focus mainly on adolescence.

Interview topic list

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We used criteria derived from Pahl’s typology (1989: 57-58) for the allocation of income

1. control: power of deciding how economic resources are to be distributed in the family.

2. management: is the carrying out of decisions that have already been made about resource allocation in the family

3. Results:

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3.1) Parents’ level of control

Control of money in the inter-generational relationship was measured by indicators like: The possibility for children:

to work or find an extra-family source of income to keep money earned or obtained (e.g., from

grandparents) for themselves to spend family money on items not approved (e.g.:

buying short skirts cut jeans cigarettes a scooter) not to justify their spending to parents

If children had all these possibilities we assumed that parents’ control was low

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3.2) Children’s perceived freedom in money management for personal spending

Degree of autonomy that a teenager has to spend money once s/he has earned or obtained it or had the authorization to spend it.

It may vary a lot between the different categories of expenditures

teenagers’ perception of freedom supposed to be related to teenagers’ perception of satisfaction about the system of allocation of money

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A TYPOLOGY OF ALLOCATION SYSTEM DURING ADOLESCENCE

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Parents’ level of control

Perceived children’s freedom in

money management

parents’ socialization

style: important values

Family n.

Group 1:

Desertmedium medium

Economic independence+ responsibility

5, 14, 17, 28, 24, 26

Group 2: Financial

literacy medium high

Economic independence+ make money profitable

9, 11 , 21

Group 3: Freedom & dependence

high highFamily economic support + general autonomy

12, 25

Group 4: Support

& protectionhigh high

Family economic support + protection

1, 2, 3, 6, 7, 8, 10, 13, 15, 16, 20, 23

Group 5:

Money as a tool for

control very-high low Deference to

parent’s authority 4, 19, 22

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Due to the time constraints we will focus only on 2 or 3 groups

Group 2: «Financial literacy» Parents’ level of control: medium Perc. children’s freedom in money- management: high

Group 4: «Support & protection» Parents’ level of control: high Perc. children’s freedom in money- management: high

Group 5: «Money as a tool for control» Parents’ level of control: very high Perc. children’s freedom in money- management: low

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Group 4: Support and Protection – summarising participants’ comments.

1. «I have always got what I wanted…basically because my parents were paying for it»

2. Material things received as compensation for missing love (independently of parent’s socio-economic status)

3. Your duty is to study4. Working while studying is a waste of time – or

risky5. Earning money to increase level of consumption

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4.1 «I have always got what I wanted…basically because my parents were paying for it»

«Basically what I have wanted in my teenager hood I have always been able to afford it because my parents were paying for it! I mean I was saying…I want this. Is it OK? OK. I want that. OK. I mean things I was asking for they understood they were always reasonable…and I got them» (Diego, M Family 1 M-high SE-status)

Group 4

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4.3 Your duty is to study

«I begun to do this occasional job because a girl from Monza in the high school needed help in English lesson and the headmaster who was my professor as well had suggested her to contact me…I thought a bit about it because my parents have always been against this. My father had always told me “your job is to study. I work 8 hours a day. You study 8 hours a days. It is correct that you do not get distracted with something else…

Group 4

… and I have always been a bit afraid to talk about this with my parents…» (Donata F Family 20 M-high SE-status)

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4.4 Working while studying is a waste of time

«...let’s say that the fact of not doing this occasional works did not give me any trauma. At all.

Because it was not…you know a job like helping top-models to get dressed…

Group 4

in that case I would have said to my father “yes you give me the money I want to earn but I have no models to dress”…The job I was proposed to do was just to give away some ad-brochure in the street…say for just 25 euro a day » (Daniele M Family 2 High SE-status)

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4.4 Working while studying is risky

Group 4

«Yes it seemed to me correct that he did not work. I said “you have to think about study first”. And his father as well. I mean I think it is correct that boys and girls try to roll up their sleeves and make some works when it is necessary…but in families where it is not necessary it is better that one arrives as soon as possible to the graduation and opens his own street…

«..It is also because I have seen some of our friend’s children

that with these occasional jobs they have sort of..lost themselves» (Daniele’s Mother, M Family 2 High SE-status)

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4.5 Using earned money increase their level of consumption (expensive clothes, leisure activities)

«Well when she was at university.. I must say she tried to do some occasional jobs in the free time…She was talking about this just few days ago and she was recalling it as a good time of her life, on the economic side , because beside the allowance she was given, she had also this extra-income to buy something or to buy some “vices” stuff…she was saying “well….maybe it was better before than now”» (smiles) (Debora’s Mother F. Family 10 M-high SE-status).

Nostalgia of student-status…

Group 4

Fear of downgrading in consumption standard when leaving parent’s house

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Group 5: Money as a tool for control – summarising participants’ comments.

1. «The weapon my parents were using on me…was money»

2. Mostly “money on-demand”-system. But demand are not often fulfilled. Not even for child’s health expenses

3. Fear of asking one parent (usually the father) for money4. Children save money to pay for experience of autonomy

(like: holidays) more than for objects5. Children use earned money to escape from parents’

reins6. Children try to escape from the gift-system and

associated family obligations

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5.2 “Money on-demand” system. But demand are not often fulfilled. Not even for child’s health expenses

«I had very twisted teeth and since I was a child at school they told me I would have to wear the teeth-brace…on the contrary my parents did not do anything about it. Now I have healed my teeth with my own money and I am veeeery happy because till 2 years ago you could not even look at me! … Last year I said to my parents “it was your duty! Because…if your children have a health problem you should care about it…” » (Eleonora Family 22 Low SE-status)

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5.4 Children save money to pay for experience of autonomy more than for objects

«I was saving money to go on holiday in the summer one week or 15 days. You see for example holiday: I have always paid myself them. Always! … rather than asking for money that later my father could ask and complain saying «ah! I gave you this so you have to give or say that»…I was not asking anything!»

(Emiliano, M Family 4 M-high SE-status).

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5.5 Children use earned money to escape from parents’ reins

«In adolescence…for me desire of money was a desire of independence. It was not money itself that I wanted. I wanted it just to buy basic things like bus-tickets…school books…all things that parents used to “keep reins tight” on their little kid (Enrico, M , Famiy 19, Low SE-status)

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5.5 Children use earned money to escape from parents’ reins

«When I started to work in the restaurant my mum realized that I was keeping money for me and I was using it to un-hook from her then started real problems among us. Because she…she realized that she had lost the power on me …it was so fast…also because at that time I started to earn quite a lot in weddings and partis….so it was more ore less 1000 euro a month...which for a 18yeras old boy…I was earning almost more than my father!» (Enrico, M , Famiy 19, Low SE-status)

Bank: used to hide money from parent’s control

Group 5

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5.6 Children try to escape from the gift-system and associated family obligation

when asked to explaining the meaning of “un-hook” «It means that they had no more power on me. Because the

weapon my parents were using on me in general was that of

money – which create a psychological dominion. Sort of: “I pay for you. You are in this house. I help you in being in the

world. So you own us something”. And I have never

stand that “you own us something”. The only way to show that I did not own anything was eliminating slowly all the things whey were paying for me» (Enrico M Family 19 Low SE-status).

Group 5

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Group 2: Financial literacy – summarising participants’ comments.

1. Children acquire the importance of economic independency and of careful and profitable money management

2. Parents talk openly about economic to children open bank accounts/saving accounts early for children and teach children practical skills to manage money

3. «I have always tried not only to save but also to make my money profitable»

4. Traditional representation of the transition to adulthood

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2.4 Traditional representation of the transition to adulthood

«I have always been used to…you see also now my wage I manage it myself completely alone. With the first-statement that my parents have always said to me: … “try to regulate yourself: if you save now until you stay at home OK but when you decide to get married we will not be able to help you a lot…so you will find something for yourself late. If you spend all [of your money] you can not have more than a certain fixed help from house even if we would”. This is the philosophy I have been raised in» (Betti, F Family 1 Low SE status)

Group 2

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5. Discussion

The study suggests that many Italian families still displays a very strong «familism-attitude» (see: Banfield 1976) and strong dependency-ties created by:

1. specific type of intergenerational allocation of money (support more important than autonomy)

2. parents’ and children’s representation of the “correct” transition to adulthood

3. lack of alternative extra-family economic supports for young Italians (Welfare system: strong male breadwinner regime )

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In details, if during economic socialization parents:4. stress the importance of accumulating personal

cultural capital (ex: good marks at school) instead of personal economic capital

5. get children used to style of consumption/standard of living very high

6. stress more their role “regulators and protectionists” than “educators” (Furnham 2001)

the process discourages children’s acquisition of economic independence from family, hence transition to adulthood

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THE END

For more information: emanuela.rinaldi@unicatt.it

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Some useful references Banfield E.C., (1958), The Moral Basis of a Backward Society, Glencoe, Ill, Chicago: Free Press. Bombi A.S., Cannoni E., (2008), ‘La rappresentazione della ricchezza e della povertà’, in E. Ruspini (ed.)

Educare al denaro. Socializzazione economica tra generi e generazioni, Milano: FrancoAngeli, pp. 37-64. Burgoyne C.B., (1990), Money in marriage: How patterns of allocation both reflect and conceal power, in

«The Sociological Review», 38, pp. 634-665. Buzzi C., Cavalli A., de Lillo A., Rapporto giovani. Sesta indagine dell’Istituto IARD sulla condizione

giovanile in Italia, Bologna: Il Mulino, 2007. Cicchelli V., (1997), ‘Le logiche di scambio delle risorse familiari degli studenti universitari: fra orientamenti

pedagogici e costruzione del self autonomo’, in in E. Scabini, G. Rossi (a cura di), Giovani in famiglia tra autonomia e nuove dipendenze, "Studi interdisciplinari sulla famiglia", 16, Milano: Vita e Pensiero, pp. 245-283.

Furnham A., (2001), Parental attitudes to pocket money/allowance for children, in «Journal of Economic Psychology», 22, pp. 397-422.

Godbout J.T., (1992), L'esprit du don, Paris: La Découverte. Pahl J., (1989), Money and Marriage, London: Macmillan. Pedrizzi T., Castrovilli E. (a cura di), (2008), Cultura economica nei licei, Milano: FrancoAngeli Dei M., (2006), Economia e società nella cultura dei giovani, Milano: FrancoAngeli.Ruspini Dosso C., Rosci E., (2000), Gli adolescenti e l'uso del denaro, in «Supplemento a Laboratorio IARD n.4

dicembre 2000».Pahl J., (1989), Money and Marriage, London: Macmillan. Operto S., (2008), ‘La cicala e la formica. Dati e ricerche sulla socializzazione economica di bambini e

adolescenti’, in E. Ruspini (a cura di) Educare al denaro. Socializzazione economica tra generi e generazioni, Milano: FrancoAngeli, pp. 65-87.

Paliaga P., Provenzano E., (2001), Leggere l'economia, in «Supplemento a Laboratorio IARD n.1 marzo 2001».

Rinaldi E., (2007) Giovani e denaro. Percorsi di socializzazione economica, Milano: Unicopli. Ruspini E. (ed.), (2008), Educare al denaro. Socializzazione economica tra generi e generazioni, Milano:

FrancoAngeli. Santoro M., (2002), A casa con mamma. Storie di eterni adolescenti, Milano: Unicopli. Webley P., Burgoyne C.B., Lea S.E.G., Young B.M., (2001), The Economic Psychology of Everyday Life,

Hove, East Sussex: Psychology Press Ltd. Zelizer V.A., (1994), The social meaning of money, New York: Basic Books.

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Note

Not all the slides of this .ppt file will be presented in the talk.

However we decided to include the following slides in the file available on the web-site in order to give you more information about the background the interviews the main aspects which will be developed in the forthcoming paper

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Transition to adulthood

Social research in Italy (and conventional social representations) see the transition to adulthood in terms of 5 steps (consequential and not overlapping):

Source: Buzzi, Cavalli, de Lillo (2007)

1) Completing or interrupting studies

5) Parenting (= generally, becoming a mother/father)

2) Getting a paid job/independent income

3) Living independently (leaving parents’ home)

4) Getting married/cohabiting (= creation of a new couple)

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Steps n. 3 , 4 and 5 are becoming more and more problematic in Italy. Especially the “leaving-parent’s home” step

Tab. 1 - Italy: Young people 18-34 years old who live with

parents by gender and group-age (per 100 young. % value)

18-19 20-24 25-29 30-34 Total year M F M F M F M F

1990 98,8 94,8 88,4 70,8 50,0 28,1 17,8 9,6 51,8 1998 99,2 97,9 94,0 83,8 71,9 46,4 30,4 15,4 59,1 2000 98,4 95,7 94,3 85,3 70,6 48,1 35,4 18,3 60,2

Source: Buzzi, Cavalli, de Lillo (2007)

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Living conditions (young people: 19-24)

Year 1996 2000 2004

students living with parents 47.3 44.8 45.6

non workers/non students living with parents

19.3 12.8 9.2

workers living with parents 17.2 28.0 28.7

married and/or with children living with parents

1.4 0.7 1.2

single person living independently 1.8 3.4 4.0

non-workers living with a new family 6.9 3.6 3.6

workers living with a new family 6.1 6.8 7.5

N= 2500 2297 2060

Source: Buzzi, Cavalli, de Lillo (2007)

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More quotes from the interviews

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Group 4: Support and Protection – summarising participants’ comments.

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4.1 I have always got what I wanted…

«No I have never had a regular pocket money…I have always asked by justifying what I needed…and I have always got what I asked without too much difficult. Apart from the scooter. Which is something that I still do not have!» (Dante, M Family 16 low SE-status).

Group 4

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4.2 Compensation for missing love (independently on the socio-economic status) «My parents…well to tell the truth they have always

been very nice with me. An example: as soon as I become 18years old I got a car. They have been two parents who have tried to spoil me in some ways…with the possibilities they have… You know they were working and I have always been left at home with my grandmother…so my mum had a sort “abandoning syndrome” towards me …. so as soon as she could she was filling me as a chicken with food and objects!» (Dante M Family 16 low SE-status).

Group 4

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4.4 Working while studying is risky

«..It is also because I have seen some of our friend’s children that with these occasional jobs they have sort of..lost themselves. And they gave up university…so I think it is also a bit risky … His parents are really disappointed….because he works in a pub and he goes to sleep at 6 in the morning…so when can he study? From 2 to 7 pm and then back to the pub?» (Daniele’s Mother, M Family 2 High SE-status).

Group 4

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Group 5: Money as a tool for control – summarising participants’ comments.

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5.1: «The weapon my parents were using on

me…was money» Parents hold high discretionary power «My father kept to educational model totally different. With

me he was the personification of strictness so when I was at the university and I took a mark like 24 over 30 it was a scandal he was shouting at me like “I have never taken such a low mark! What a shame!”. Just the stick with me. With my brother it was the carrot. Maybe because he sees him as more weak. His activity with my brother was that of insisting giving more and more to my brother whatever he needed even spoiling him because my brother basically he has a car like me but it is paid by my father the insurance and the fuel is paid my father the pc was given to him as a present. (continues…)

Group 5

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… …Another paradigmatic example : my father has always

complained with me my balls for soccer. He has never bought me a pair of soccer sneakers or leg-protections and he never came to see me playing. … I have few things that are mine but those nobody can absolutely touch them. My father tried many times to do it but I have always rejected him. And how he doest this intrusion? with a black mail often economical saying “ah! I am going to buy you this so that you are morally obliged to do that”.. … like “I bought you a computer so now you have to pass 3 exams”… that he stills does with my brother» (Emiliano, M Family 4, M-high SE-status).

Group 5

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5.3 Fear of asking one parent (usually the father) for money

«Well I recriminate about my parents not having paid my health-care expenses to my mum…not to my father…you see even if I am 33 years old I would never say some stuff to my father … On the contrary I did say it to my mum …and she suffers for this. Because according to me she understands I that I am right but…at the same time she replies “what could I do if your father…?” Yes it is true. He was sort of father-master….he was deciding everything. Maybe for his personal spending money he was spending here and there …but not for our health…he does not care at all about it…» (Eleonora, F. Family 22 Low SE-status).

Group 5

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5.4 Children save money (from pocket money or occasional jobs or money given by relatives for presents) to pay for experience of autonomy (like: holidays) more than for objects

«I was saving money to go on holiday in the summer one week or 15 days. You see for example holiday: I have always paid myself them. Always! Because rather than asking them 1 euro…them: no well to tell the truth my mum is a very nice person! Also my father is a nice person but my mum is very sweet….. Anyway rather than asking for money that later my father could ask and complain saying «ah! I gave you this so you have to give or say that»…I was not asking anything! Yet if he wanted to give me some money for holiday it was ok but I was auto-sufficient even without his help!» (Emiliano, M Family 4 M-high SE-status).

Group 5

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Group 2: Financial literacy – summarising participants’ comments.

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2.1 Children acquire the importance of economic independency and of careful and prudent? money management

Talking about the advantage of having pocket money «You see…you have to manage the money all month long

so you have to be careful ...you have all the money the first day of the month but it has to last for 30days so you can not waste everything in the first week……. She was giving me this monthly allowance proportionate to my age my mum…we were looking at my expenses, taking into consideration different expenses like underground tickets, fuel for the scooter…I do not know..I think she was giving me about 50 euro a month, but I remember I was able to make them be enough and…also to save something. Yes! … Let’s say that I had a small but important independence» (Barbara, F Family 9 M-high SE-status)

Group 2

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2.2 Parents open bank account early on and teach children practical skills to manage money

«I have had got a bank account…I can’t recall since when… I think since I was very young. I was getting money for Christmas and…I have always had the total management of all what I was earning or getting…I had a folder with all my papers and documents…since always!» (Betti, F Family 11 Low SE-status)

Group 2

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2.3 Make money fruitful

«Well about this I am a real phenomenon! I mean…since I was 10 I was managing my money all I had as pocket money or presents I was putting then immediately on my bank account I was writing details down I wanted to know if they were going up or down everything.. I wanted to know everything! And by growing I wanted to know more and more. I mean that…very early…I do not remember if when I was 18 or a bit earlier I did some investments. I think with bank Mediolanum…and so…I mean I have always tried not only to save but also to make my money profitable …I have always set for myself the target of making something out of my money. I mean not only saving bur also investing them and make them fructuous» (Barbara, F Family 9 M-High SE-status)

Group 2 END of SUPPLEMENTARY SLIDES